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Smart Greenhouse Market

ID: MRFR/CnM/10900-HCR
111 Pages
Anshula Mandaokar
October 2025

Smart Greenhouse Market Research Report Information By Type (Hydroponics and Non-hydroponics), By Covering Material Type (Polycarbonate and Others), By Offering (Hardware and Software and services), By Component (HVAC Systems, LED Grow Lights, and Control System & Sensors), by End User (Commercial Growers, Research & Educational Institutes, Retail Gardens, and Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035

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Smart Greenhouse Market Summary

As per MRFR analysis, the Smart Greenhouse Market Size was estimated at 1.875 USD Billion in 2024. The Smart Greenhouse industry is projected to grow from 2.069 USD Billion in 2025 to 5.525 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 10.32 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Smart Greenhouse Market is poised for substantial growth driven by technological advancements and sustainability initiatives.

  • The integration of IoT technologies is revolutionizing operational efficiency in smart greenhouses.
  • Sustainability and resource efficiency are becoming paramount as urban agriculture expands in North America.
  • Hydroponics remains the largest segment, while non-hydroponics is experiencing rapid growth in the Asia-Pacific region.
  • Technological advancements in agriculture and rising demand for organic produce are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 1.875 (USD Billion)
2035 Market Size 5.525 (USD Billion)
CAGR (2025 - 2035) 10.32%

Major Players

Netafim (IL), Signify (NL), Argus Control Systems (CA), Greenhouse Megastore (US), Autogrow (NZ), Priva (NL), GrowSpan (US), Hydroponics (US), AeroFarms (US)

Smart Greenhouse Market Trends

The Smart Greenhouse Market is currently experiencing a transformative phase, driven by advancements in technology and a growing emphasis on sustainable agricultural practices. This market appears to be evolving rapidly, as stakeholders increasingly recognize the potential benefits of integrating smart technologies into traditional greenhouse operations. Automation, data analytics, and IoT applications are becoming commonplace, enabling growers to optimize resource usage, enhance crop yields, and reduce environmental impact. Furthermore, the rising demand for organic produce and the need for efficient food production systems are likely to propel the adoption of smart greenhouse solutions across various regions. In addition to technological advancements, the Smart Greenhouse Market is influenced by changing consumer preferences and regulatory frameworks that favor sustainable practices. As urbanization continues to rise, the necessity for local food production becomes more pronounced, suggesting that smart greenhouses could play a pivotal role in meeting urban food demands. The market's trajectory indicates a shift towards more integrated systems that not only focus on crop production but also on energy efficiency and waste reduction. Overall, the Smart Greenhouse Market is poised for growth, with numerous opportunities for innovation and collaboration among industry players.

Integration of IoT Technologies

The Smart Greenhouse Market is witnessing a notable trend towards the integration of Internet of Things (IoT) technologies. This development allows for real-time monitoring and control of environmental conditions, such as temperature, humidity, and light levels. By utilizing sensors and automated systems, growers can make informed decisions that enhance plant health and optimize resource usage.

Sustainability and Resource Efficiency

A growing emphasis on sustainability is shaping the Smart Greenhouse Market. Stakeholders are increasingly focused on minimizing waste and maximizing resource efficiency. This trend is reflected in the adoption of renewable energy sources, water recycling systems, and organic farming practices, which collectively contribute to a more sustainable agricultural framework.

Urban Agriculture Expansion

The expansion of urban agriculture is significantly influencing the Smart Greenhouse Market. As cities continue to grow, the demand for locally sourced food is rising. Smart greenhouses are emerging as viable solutions to address this need, enabling urban dwellers to cultivate fresh produce in limited spaces while reducing transportation emissions.

Smart Greenhouse Market Drivers

Rising Demand for Organic Produce

Consumer preferences are shifting towards organic produce, significantly impacting the Smart Greenhouse Market. As health-conscious consumers increasingly seek fresh, pesticide-free fruits and vegetables, smart greenhouses offer a viable solution to meet this demand. These facilities can provide controlled environments that enhance the growth of organic crops while minimizing the use of harmful chemicals. Market data suggests that the organic food sector is projected to grow at a compound annual growth rate of over 10% in the coming years. This trend is likely to encourage more farmers to adopt smart greenhouse technologies, as they align with sustainable practices and consumer expectations. Consequently, the Smart Greenhouse Market is poised to benefit from this growing inclination towards organic farming, potentially leading to increased investments and innovations in greenhouse technologies.

Government Initiatives and Support

Government initiatives aimed at promoting sustainable agriculture are playing a crucial role in the Smart Greenhouse Market. Various countries are implementing policies that encourage the adoption of smart farming technologies, including financial incentives, grants, and subsidies for greenhouse construction and operation. These initiatives are designed to enhance food security, reduce environmental impact, and promote efficient resource use. For instance, some governments have set ambitious targets for reducing greenhouse gas emissions from agriculture, which can be achieved through the implementation of smart greenhouse technologies. As a result, the Smart Greenhouse Market is likely to see increased participation from farmers and investors, driven by favorable regulatory environments and support mechanisms. This trend suggests a collaborative effort between the public and private sectors to advance agricultural sustainability.

Urbanization and Space Constraints

The increasing trend of urbanization is reshaping the Smart Greenhouse Market, as space constraints in urban areas drive the need for innovative agricultural solutions. With more people moving to cities, traditional farming practices are becoming less feasible, leading to a growing interest in urban agriculture. Smart greenhouses, which can be installed in limited spaces such as rooftops and vacant lots, offer a practical solution for urban dwellers seeking fresh produce. Market data indicates that urban agriculture is expected to grow significantly, with smart greenhouses playing a pivotal role in this transformation. By utilizing advanced technologies to maximize space and resources, these greenhouses can contribute to local food production and reduce transportation emissions. This trend highlights the potential for the Smart Greenhouse Market to thrive in urban settings, catering to the needs of city populations.

Climate Change and Environmental Concerns

The growing awareness of climate change and its impact on agriculture is significantly influencing the Smart Greenhouse Market. As extreme weather events become more frequent, traditional farming methods face challenges that threaten crop yields and food security. Smart greenhouses, equipped with climate control technologies, can mitigate these risks by providing stable growing conditions regardless of external weather fluctuations. Market analysis indicates that the demand for climate-resilient agricultural solutions is on the rise, with smart greenhouses emerging as a key player in this sector. By enabling year-round production and reducing dependency on unpredictable weather patterns, these facilities are likely to attract more farmers seeking reliable and sustainable farming methods. This trend underscores the importance of innovation in addressing environmental challenges within the Smart Greenhouse Market.

Technological Advancements in Agriculture

The Smart Greenhouse Market is experiencing a surge due to rapid technological advancements in agricultural practices. Innovations such as automated climate control systems, advanced irrigation techniques, and real-time monitoring tools are becoming increasingly prevalent. These technologies enhance crop yield and reduce resource consumption, making greenhouses more efficient. According to recent data, the integration of smart technologies can increase productivity by up to 30%. As farmers seek to optimize their operations, the demand for smart greenhouses is likely to rise, driving market growth. Furthermore, the ability to remotely manage greenhouse conditions through mobile applications adds convenience, appealing to a broader range of agricultural stakeholders. This trend indicates a shift towards more tech-savvy farming methods, positioning the Smart Greenhouse Market for substantial expansion.

Market Segment Insights

Smart Greenhouse Market Type Insights

The Smart Greenhouse Market segmentation, based on type, includes Hydroponics and Non-hydroponics. The largest category of smart greenhouse production techniques is hydroponics, which is motivated by its high output and resource efficiency. By nourishing plants with a nutrient-rich water solution instead of soil, this technique uses less water and lowers the danger of soil-borne illnesses. Crop growth and quality are greatly improved by the exact control that smart greenhouses offer over environmental conditions and nutrient supply.

With its sustainable and effective cultivation method, hydroponics is leading the sector's growth as worries about food supply and water scarcity throughout the world grow.

Figure 1: Smart Greenhouse Market, by Type, 2022 & 2032 (USD Billion) Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Smart Greenhouse Market Component Insights

The Smart Greenhouse Market segmentation is based on components, HVAC systems, LED grow lights, and control systems & sensors. The HVAC systems category is the biggest one in the smart greenhouse industry. The main factor behind this domination is the vital function HVAC plays in controlling the inside climate of greenhouses. HVAC systems ensure year-round cultivation by maintaining ideal humidity and temperature levels. HVAC is a crucial component that is driving the expansion of its category due to the growing demand for constant crop quality and production, as well as the necessity of climate control during extreme weather conditions.

Smart Greenhouse Market End User Insights

The Smart Greenhouse Market segmentation, based on end users, includes commercial growers, research & educational institutes, retail gardens, and others. The commercial growers category make up the largest market sector for smart greenhouses. The strong need for improved crop production efficiency and reliable quality in commercial agriculture is the foundation of this domination. Higher crop yields, efficient resource management, and economical operations are all provided by smart greenhouse systems. The need to ensure sustainability while meeting the increasing demands for food throughout the world is a major motivator, with commercial producers being the main users of this technology.

Smart Greenhouse Market Covering Material Type Insights

The Smart Greenhouse Market segmentation, based on covering material type, includes polycarbonate and others. Polycarbonate category constitutes the largest section of the smart greenhouse construction materials market. The expansion of this market is being driven by polycarbonate because of its remarkable qualities, which include high durability, light diffusion, and insulation. It provides a resilient and long-lasting substitute for glass, which is often used for greenhouse glazing. It is a favored material for greenhouse construction because of its capacity to uniformly disperse sunlight, which lowers the possibility of crop damage from extreme heat or UV radiation.

This segment has grown significantly as a result of its energy-efficient insulation qualities, which also aid in keeping a stable interior environment, which is essential for plant growth.

Smart Greenhouse Market Offering Insights

The Smart Greenhouse Market segmentation, based on offering, includes hardware and software services. Hardware category makes up the biggest portion of the market for smart greenhouse technologies. The primary reason for this domination is the vital role that physical components play in the development and upkeep of smart greenhouse systems. Sensors, actuators, control systems, and other necessary devices are examples of hardware. In smart greenhouses, these elements serve as the foundation for automation, data gathering, and remote monitoring. Hardware investments mostly drive the growing demand for data-driven decision-making and precision agriculture.

Get more detailed insights about Smart Greenhouse Market

Regional Insights

North America : Technological Innovation Leader

North America is the largest market for smart greenhouses, holding approximately 40% of the global market share. The region's growth is driven by increasing demand for sustainable agriculture, technological advancements, and supportive government policies promoting eco-friendly practices. The U.S. and Canada are the primary contributors, with a strong focus on automation and IoT integration in agricultural practices. The competitive landscape is robust, featuring key players like Netafim, Argus Control Systems, and AeroFarms. The presence of established companies and startups fosters innovation, while collaborations with research institutions enhance product development. The U.S. market is particularly dynamic, with significant investments in R&D aimed at improving efficiency and yield in greenhouse operations.

Europe : Sustainable Agriculture Hub

Europe is the second-largest market for smart greenhouses, accounting for around 30% of the global share. The region's growth is propelled by stringent environmental regulations, a strong emphasis on sustainability, and increasing consumer demand for locally sourced produce. Countries like the Netherlands and Germany lead the market, supported by government initiatives aimed at reducing carbon footprints in agriculture. The competitive landscape in Europe is characterized by a mix of established firms and innovative startups. Key players such as Signify and Priva are at the forefront, leveraging advanced technologies to enhance greenhouse efficiency. The region's focus on research and development, coupled with a collaborative approach among stakeholders, positions Europe as a leader in smart greenhouse solutions.

Asia-Pacific : Emerging Market Potential

Asia-Pacific is witnessing rapid growth in the smart greenhouse market, holding approximately 20% of the global share. The region's expansion is driven by increasing urbanization, rising food demand, and government initiatives promoting modern agricultural practices. Countries like China and Japan are leading the charge, with significant investments in smart farming technologies to enhance productivity and sustainability. The competitive landscape is evolving, with both local and international players entering the market. Companies like Autogrow and Hydroponics are gaining traction, focusing on innovative solutions tailored to regional needs. The presence of a growing middle class and changing dietary preferences further fuels the demand for advanced greenhouse technologies, making Asia-Pacific a key area for future growth.

Middle East and Africa : Resource-Rich Frontier

The Middle East and Africa region is emerging as a significant player in the smart greenhouse market, accounting for about 10% of the global share. The growth is driven by the need for food security, especially in arid regions, and government initiatives aimed at enhancing agricultural productivity. Countries like South Africa and the UAE are at the forefront, investing in smart technologies to optimize resource use and improve crop yields. The competitive landscape is characterized by a mix of local and international companies. Key players are increasingly focusing on sustainable practices and innovative solutions to address regional challenges. The presence of organizations promoting agricultural technology adoption further supports market growth, making this region a promising frontier for smart greenhouse solutions.

Smart Greenhouse Market Regional Image

Key Players and Competitive Insights

During the forecast period, the leading market players Market will further their reach owing to widening investments on a scale. Furthermore, the players are expected to undertake various market developments, including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations to increase their production further. The Smart Greenhouse industry will widen its value at a rapid pace.

The Smart Greenhouse industry is expected to widen its outreach by investing heavily within its manufacturing base. During the forecast period, the Smart Greenhouse industry has offered some of the most significant advantages to the automotive industry. Major players in the Smart Greenhouse Market, including Heliospectra AB, Rough Brothers Inc. (Gibraltar Industries INC.), Lumigrow Inc., Certhon, GreenTech Agro LLC, Argus Control System Ltd, and others, are attempting to increase market demand by investing in research and development operations.

One of the leading companies in the smart greenhouse industry, Argus Control Systems Ltd., provides complete control and monitoring systems. Their cutting-edge solutions offer real-time data on greenhouse conditions, guaranteeing the best possible crop management, energy efficiency, and climate control. Their proficiency in horticulture automation gives them a competitive advantage and establishes them as a preferred option for retail gardens, research institutes, and commercial farmers. Furthermore, their dedication to sustainability and innovation is in line with the market's rising need for environmentally friendly products.

Argus Control Systems is a significant player in this market due to its robust industry presence and commitment to supporting the changing demands of the smart greenhouse market.

Offering a large selection of goods and solutions for greenhouse requirements, Greenhouse Megastore is a major player in the smart greenhouse market. Their wide range of products, which includes supplies, equipment, and greenhouse structures, gives them a competitive edge. They serve a wide range of clients, including both enthusiasts and commercial producers. The company has established itself as a dependable option for greenhouse-related products thanks to its dedication to quality, price, and customer service.

Thanks to its wide range of products and online platform, Greenhouse Megastore is a force to be reckoned with in the smart greenhouse market, catering to a diverse range of sectors and clients.

Key Companies in the Smart Greenhouse Market market include

Industry Developments

August 2022: Philips horticulture LED grow light solution was installed by Signify Korea at the 2.8 ha Parm Farm Greenhouse in Nonsan, Chungcheongnam-do, Korea, for the cultivation of tomatoes. In order to increase yields, quicken plant growth, and facilitate the production of higher-quality crops, Parm Farm installed Philips GreenPower toplighting compacts.

January 2022: International Greenhouse Co. Greenhouse Megastore, a wholesaler of hobby and commercial greenhouse buildings and related items, was acquired by BFG Supply in January 2022. Through the acquisition of GMS, BFG will be able to offer a wider range of greenhouse products and services, thereby raising the bar for customer care in the horticulture industry.

Future Outlook

Smart Greenhouse Market Future Outlook

The Smart Greenhouse Market is projected to grow at a 10.32% CAGR from 2024 to 2035, driven by technological advancements, sustainability trends, and increasing food demand.

New opportunities lie in:

  • Integration of AI-driven climate control systems
  • Development of modular greenhouse designs for urban areas
  • Expansion of subscription-based smart farming services

By 2035, the Smart Greenhouse Market is poised for substantial growth, reflecting evolving agricultural practices.

Market Segmentation

Smart Greenhouse Market Type Outlook

  • Hydroponics
  • Non-hydroponics

Smart Greenhouse Market End User Outlook

  • Commercial Growers
  • Research & Educational Institutes
  • Retail Gardens
  • Others

Smart Greenhouse Market Offering Outlook

  • Hardware
  • Software & Services

Smart Greenhouse Market Component Outlook

  • HVAC Systems
  • LED Grow Lights
  • Control System & Sensors

Smart Greenhouse Market Covering Material Type Outlook

  • Polycarbonate
  • Others

Report Scope

MARKET SIZE 20241.875(USD Billion)
MARKET SIZE 20252.069(USD Billion)
MARKET SIZE 20355.525(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)10.32% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of advanced automation and IoT technologies enhances efficiency in the Smart Greenhouse Market.
Key Market DynamicsTechnological advancements drive efficiency and sustainability in smart greenhouse operations, reshaping agricultural practices.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Anshula Mandaokar
Team Lead - Research

Anshula Mandaokar holds an academic degree in Chemical Engineering and has been contributing to the field for more than 5 years. She has expertise in Market Research and Business Consulting and serves as a Team Lead for a reputed Market Research firm under the Chemicals and Materials domain spectrum. She has worked on multiple projects, generating explicit results in a quick turnaround time. Her understanding of data interpretation justifies her role as a leader.

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FAQs

What is the current valuation of the Smart Greenhouse Market as of 2024?

The Smart Greenhouse Market was valued at 1.875 USD Billion in 2024.

What is the projected market valuation for the Smart Greenhouse Market in 2035?

The market is projected to reach a valuation of 5.525 USD Billion by 2035.

What is the expected CAGR for the Smart Greenhouse Market during the forecast period 2025 - 2035?

The expected CAGR for the Smart Greenhouse Market during 2025 - 2035 is 10.32%.

Which companies are considered key players in the Smart Greenhouse Market?

Key players in the market include Netafim, Signify, Argus Control Systems, and others.

What are the main segments of the Smart Greenhouse Market?

The main segments include Type, Covering Material Type, Offering, Component, and End User.

How does the hydroponics segment perform in terms of market valuation?

The hydroponics segment is projected to grow from 0.675 USD Billion to 1.925 USD Billion by 2035.

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